⏱️ TWRR (Time-Weighted Rate of Return)

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💡 What is it?

TWRR measures the "pure" performance of your chosen assets (The Market), completely ignoring the timing and size of your deposits or withdrawals.

🧮 How it works

Every time you deposit or withdraw money, TWRR "breaks" the timeline into a sub-period. It calculates the return for that specific sub-period, and then links (multiplies) all sub-periods together.

\[ R_{TWRR} = \prod_{i=1}^{n} (1 + r_i) - 1 \]

🎯 When to use it

• To judge if the assets you picked are actually good.
• To compare your portfolio against an external benchmark (like the S&P 500).
• Mutual funds and ETFs always report TWRR, because the fund manager cannot control when clients deposit or withdraw money.